Earlier this year, there were a lot of “what-ifs” when Biden faced off against former rival Trump, who he'd beaten in the polls just four years prior. Then, when Biden dropped out of the race, even more what-ifs emerged with Harris entering the ring. Now, the dust has settled and the historic 2024 presidential election has been decided with a Trump trifecta – the former President reclaiming the White House and Republicans taking both the Senate and the House. The question in self-storage circles now is, what impact will the Republican victory have on the industry?
We reached out to experts in the self-storage sector for their thoughts on the matter. While some declined to comment, others were happy to weigh in. The overall sentiment appears to be one of cautious optimism; there is hope about potential tax reductions and deregulation under Trump's leadership, but some apprehension regarding trade policies, immigration, and economic stability.
Unedited thoughts from our experts follow in alphabetical order.
Armand
Aghadjanians
Director of Acquisitions
Store Here Self Storage
Many prospective buyers and sellers hesitated with transactions leading up to the election, so I anticipate an increase in transaction volume soon. Regulatory and tax implications will likely be less of a concern, especially around corporate tax, pricing regulations, and payroll.
Interest rates may see modest improvement comparatively to a Harris presidency, but key questions remain, especially for the Fed: How will Trump’s tariffs impact construction costs and ensuing supply? Is what he says rhetorical maneuvering as a negotiating tactic? How will oncoming immigration policies affect housing and construction labor? Could mean less demand, less GDP, less oncoming supply. Could mean many things.
I’d say there is still significant uncertainty ahead.
Anne
Ballard
Mike
Burnam
CIO/President
StorageMart
As to how the presidential election directly affects the self-storage industry, I would have to say negligibly. Likewise when it comes to Congress. The biggest issue remaining is the economy and how we can get the housing industry going in the right direction to where people can afford to move again.
Jim
Chiswell
Managing Partner
Chiswell & Associates
No matter what your politics are or how you voted, getting the election behind us will provide some stability. Having the responsibility of the White House, the Senate, and the House puts a great deal of pressure on the Republican Party to deliver for all Americans.
The big test will be how fast their efforts can contribute to lowering the day-to-day cost of living for families. A growing confidence level with positive changes will help to get people motivated to start buying homes again. That movement is what our industry needs to rent units.
But the election of Trump will no longer be just about him. A great deal of attention will be paid to the quality of the leadership he selects for his Cabinet and to lead other aspects of the government.
Having two new members of Congress with self-storage backgrounds also provides a new opportunity for our industry. [Jefferson Shreve and Troy Downing].
As a nation, I believe strongly that we face challenges from every corner of the planet and maybe beyond! Stay focused and always remember self-storage is a service business and not a real estate business. Keep customer service as your number one priority.
Marc
Goodin
President
Storage Authority
In general, the election results are very positive for self-storage, both short term and long term.
One of the main goals of the new Trump administration is to lower energy and oil costs. Lower energy and gas prices lower the cost of just about everything, making for a better economy and better self-storage development.
The Republicans ran on a platform to improve the economy. One of the best ways to do that is to improve the housing market. Given that people moving is well over half our rentals, occupancy rental rates should be increasing in 2025.
Taxes are one of the biggest expenses in self-storage. Maybe neither party would reduce our real taxes but the goal/hope is Trump will reduce or at least not increase taxes.
In many regards, the economy is a world economy. With recent wars, conflicts, and even possible new tariffs, it is next to impossible to say what is the right strategy. It does appear Trump will be trying new strategies that have not been done before. This could lead to the best of times or the worst of times – or more likely, somewhere in between.
In any event, the government is not going to make or break self-storage over the long term. And the future of self-storage is looking very bright!
Neal
Gussis
Executive Director
Capital Markets
SPMI Capital
The new administration will come with both headwinds and tailwinds.
Regulation – The President-elect has run on promises of less regulation. In the banking industry that should provide some relief in capital requirements and possibly more favorable reporting and booking of assets and liabilities. This may lead to more lenders being active, however I don’t see underwriting standards loosening much.
Taxation – Given the real estate background of the incoming president, I think we can count on capital gains treatment on sales to, at a minimum, stay the same or maybe improve. Thus the new administration may provide better incentives to transact for sellers and buyers.
Economy – The new administration will be coming into office with current low inflation, low unemployment, solid consumer confidence and GDP, and a record-setting stock market. I think it will be difficult for the new administration to deliver on a promise to lower costs in any meaningful way. I do think the higher probability is that wages may be able to outpace future inflation. Thus, rental pricing will remain a factor of supply and demand. However, month-to-month rental agreements are a major benefit to our industry, allowing us to ride with inflation at inflection points.
Interest rates – Many think that the longer-term treasuries will remain higher for longer, believing that the policies proposed during the campaign, particularly imposing tariffs, will create inflation. Time will tell. Higher cost of capital will have a direct impact on how much owners are able to borrow as well as creating spending pressures on consumers.
Housing Market – I believe the biggest impact on self-storage right now is being able to solve for more movement in home sales. Self-storage demand is based on many needs, and one of the largest single factors is created by people moving. Currently 70% of all existing home owners have mortgages under 4% and housing prices are on the rise, and interest rates on purchases are elevated. Promises have been made for more affordable housing. I don’t think it is that easy. This is a tricky equation which I think will work itself out one way or another by the overall policies of the new administration. In the meantime, owners will need to remain on top of their game to attract new renters.
Scott
Holland
Regional Sales Manager
StoragePRO Management
Both Democrats and Republicans invest in the stock market so whether your candidate won or lost, there can be no denying the market loves a business-friendly administration. Dow futures surged as the states on the electoral map turned red and at the time of this writing [November 8] all three major stock indexes are in record territory. And while investors are reaping financial rewards, how does self-storage benefit from the election results? Lower taxes and reduced regulations.
President-elect Trump is a friend to business and promised to reduce the current corporate tax rate from 21% to 20%. While it's just 1%, every dollar matters to a small business, and self-storage owners will benefit from the reduced tax burden. In a recent interview, Kevin O’Leary, Mr. Wonderful on Shark Tank, said having a stable corporate tax rate is good for small business and will bring money into the US. Lowering bank taxation can increase credit supplied to corporate borrowers allowing would-be self-storage owners to take advantage of all that currency flowing into U.S. banks. Lastly, President-elect Trump will likely reinstate many of the 2017 tax cuts which are due to expire next year, and he has no plans to tax unrealized gains.
If it’s not taxes that break the bank of a small business, its regulations. Getting tangled up in the bureaucratic red tape of business ownership can be daunting. President-elect Trump is a strong proponent of easing stringent regulations that suffocate small businesses. Lessening that burden will invite many would-be self-storage owners to invest in the space.
Energy costs have skyrocketed in recent years causing a heavy burden on self-storage businesses. President-elect Trump has promised to increase domestic oil and gas production and reduce the regulatory burdens and costs on oil and gas exploration. Self-storage businesses will benefit greatly from lower energy costs.
Jason
Koonin
CEO
Sunbird Storage
Management
After two difficult years for the industry, the climate for self-storage appears to be improving as we head into 2025. Headwinds have now become tailwinds created by interest rate cuts, election certainty, and large stockpiles of cash on the sidelines. We have seen a significant uptick in investor interest in the sector recently. Next year could be very good for raising capital and transaction volume.
John
Lindsey
Co-Founder & President
Lindsey Self Storage
Group
God bless DJT!
Maurice
Pogoda
President & Founder
Pogoda Companies
The election results surprised many, myself included. The election of Donald Trump could have both positive and negative impacts on the self-storage industry. The primary drivers would likely be his economic policies (tariffs, tax cuts, deregulation), the state of the real estate market, and the broader business environment. As we know, self-storage tends to do well in environments marked by population growth, increased mobility, and a strong commercial real estate market—all factors that could be influenced by Trump’s policies. The question now is what will President-elect Trump actually do?
It is obviously too early to tell, but if his policies promote growth resulting in lower interest rates, self-storage should prosper as the residential real estate market recovers. If he enacts broad tariffs, many economists believe that Americans will spend more for goods and that it will drive inflation higher. If that were to occur, self-storage would be harder for people to afford, along with other discretionary items. I would then imagine that storage would continue the downward trend that we have all experienced in 2023-24.
I have to say though, that I am an optimist. I’ve seen many presidents and cycles come and go and I like to believe that we are in a resilient industry, and we will weather anything that is thrown at us.
-
Christian
Sonne
Executive VP
Specialty Practice Co-Leader
Newmark
It is so early, it is difficult to forecast what changes are ahead. Wall Street certainly reacted enthusiastically yesterday [November 8] and that is a good sign. My sense of market sentiment is generally positive with the outcome and that is a good sign too!
Interest rates will continue to decline, regardless of who the president is, and that is always beneficial for self-storage property. As inflation has cooled, consumer sentiment should improve organically and that is great for self-storage rents. I see cautious optimism for 2025 and 2026 for the sector.
There you have it, and thank you to our eleven experts for providing their thoughts. Now, we’d love to hear your thoughts too. Click to share and leave comments on our LinkedIn page.
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Brad Hadfield is the website manager and a news writer for MSM.
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